ČEZ Group secures major stake in GasNet to spearhead Czech Republic’s energy transition

In a strategic move poised to reshape the energy landscape of the Czech Republic, ČEZ Group has announced its acquisition of a significant 55.21% stake in GasNet, the nation’s premier gas distribution infrastructure operator. This pivotal transaction, valued at EUR 846.5 million, underscores ČEZ Group’s commitment to spearheading the Czech Republic’s energy transition from coal to more sustainable sources like natural gas and, eventually, hydrogen.

GasNet stands as a critical component in this energy paradigm shift, managing an expansive network of 65,000 km of gas pipelines and catering to roughly 2.3 million consumption points across the country. The company’s dominance in the Czech gas distribution market, with an 80% market share, is set to play a key role in ensuring energy security as the nation gradually phases out coal in favor of cleaner energy alternatives.

This acquisition marks a milestone in ČEZ Group’s extensive energy modernization initiative, dubbed the Clean Energy for Tomorrow strategy. Daniel Beneš, Chairman of the Management Board and CEO of ČEZ, highlighted the company’s vision for the future: a focus on renewable resources and nuclear power in power generation, and on biomass and natural gas — as a transitional fuel — in heat and power generation sectors. The acquisition not only bolsters ČEZ Group’s position in the natural gas market but also aligns with its goals for green and low-emission energy production by 2030.

The deal structure reveals a complex web of transactions leading to the acquisition of the majority stake in GasNet from the seller, Macquarie Asset Management, on behalf of managed funds. This strategic acquisition is financed through a bridge loan underwritten by a syndicate of commercial banks, with plans for subsequent refinancing via the bond market.

Approval from the European Commission and the Czech Ministry of Industry and Trade is pending, but once secured, the acquisition will solidify ČEZ Group’s strategic positioning in the energy sector’s transformation. Pavel Cyrani, Vice Chairman of the Management Board of ČEZ, emphasized the crucial role of GasNet in the country’s energy security and the future integration of hydrogen and other green gases into its distribution network.

In conclusion, ČEZ Group’s acquisition of a majority stake in GasNet represents a significant leap forward in the Czech Republic’s journey towards a more sustainable energy future. This move not only signifies a strategic pivot towards cleaner energy sources but also promises to enhance the nation’s energy security and environmental sustainability in the coming years.